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Cable Makes Progress Toward DMA Resistance

GBP
  • GBP/USD making some progress on the back of USD weakness as US10yr yields dip headed into the NY crossover. Rate is now creeping back towards the 50- and 200-dmas at 1.3808 (which coincides with the late August highs) and 1.3813.
  • UK curve slightly flatter so far relative to USTs which could limit GBP's advance. Would work in favour of EUR/GBP resuming the positive short-term theme, initially targeting yesterday's highs at 0.8603 ahead of the 76.4% Fib (Jul 20 - Aug 10 sell-off) at 0.8618.

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